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In Mexico, as is the case with in any other country or community, workforce is perhaps the most critical consideration; always seek a location that provides the workforce capability and concentration, accessibility, trainability, and efficiency required for the relevant manufacturing functions. Workforce denseness relates to the size of the available work force within a practical commuting distance of the location. Trainability relates to the educational milieu and job experience. When assessing the make-up of the local Mexican labor, it typically helps to place candidates for positions within three categories: skilled, semi-skilled, and unskilled. Mexico Manufacturing Cost Components 1) Work Force 2) Real Estate 3) Transportation 4) Utilities 5) Governmental Stability Mexico Workforce Is the location within proximity of a pool of labor that can perform the manufacturing tasks at hand? Mexican Industrial Real Estate Aside from cultural and local considerations, there are many options for choosing the actual building for a company in Mexico: -You can acquire raw land and develop it -You can find developed land with presented fitting infrastructure -Find an existing structure and acclimatize it to a particular use. The Offshore Group offers ready Mexico industrial real-estate option as a part of its Shelter Plan. -Build a new facility specifically for the project. To decide it is helpful to look at zoning, property age and state, property impression, site size and contour, limitations, landscape and geography, accessibility to major transportation corridors and proximity of amenities. Proper zoning and permitting are critical elements in the site location in Mexico as is the case in other countries. Quality of life reflections are central in attracting employees to relocate, if this is required. Talk to the police and residents about the site and the area. Ask to see information pertaining to crime statistics, and for any other guidance that is relevant and may be of concern. Maybe local the federal, state or local governments are offering special programs or incentives for certain industries? Aerospace, for instance, is an industry that Mexico is working aggressively to attract. Freight and Transportation to and from Mexico What is the cost and availability of applicable transportation service—air, water, rail, and highway? Transportation is a significant factor to consider, for if a site is chosen with inefficient transportation linkages, any cost savings in manufacturing gained in the area of labor can easily be eaten up by the cost of shipping raw materials and finished product to and from Mexico. It is important to find the optimal setting: both in terms of proximity to customers and markets and cost. Look for Mexico industrial locations that offer at least two directions for their in-bound traffic as well as at least two routes for delivery of goods to customers. Inbound and outbound transportation costs and lane aptitude constraints factor into good Mexican site selection decision making. For companies that depend heavily on raw materials, the issue is nearness, what is the average mileage and travel time for inbound shipments in Mexico? Availability of Utilities Access to utilities with the extent and volume essential for both the primary investment and future expansions is imperative. Water, sewer, electrical, natural gas, and telecommunications are all potentially required at a Mexican manufacturing site. Look at sanitation, storm water management, water supply, electricity, fuel oil, telephone, and water disposal, and look at access: the ability to get to highways, rail, sewers, etc.  Steven is the director of corporate marketing for the Tucson, Arizona-based Offshore Group. The Offshore Group has enabled businesses to establish and start-up low-cost and low-risk operations since 1986 Steve has been working in the area of U.S. -Mexico manufacturing and trade for the past twenty years, and is fluent in both Spanish and Portuguese Manufacturing in Mexico , Mexico Shelter Companies
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